Indian developer Sobha's profit jumps on robust demand for premium homes

Prestige Estates Projects

17/10/2025 12:20

Oct 17 (Reuters) - Indian homebuilder Sobha SOBH.NS reported second-quarter profit that more than doubled on Friday, helped by high prices and sustained demand for premium apartments.

The Bengaluru-based real estate company said its consolidated net profit rose to 725.3 million rupees ($8.2 million) from 260.9 million rupees a year ago.

Revenues rose 50.7% to 14.08 billion rupees.

KEY CONTEXT

Residential real estate developers have experienced robust growth this year, with Sobha posting record sales in the June quarter, with cuts in India's consumption tax and interest rates expected to further spur consumer demand.

Sales for the second-quarter rose 61% to 19.03 billion rupees.

While Sobha did not have any launches this quarter, pre-sales from its existing inventory aided.

For the rest of the year, demand for residential apartments is expected to remain healthy, especially for branded and credible developers that offer prime gated projects in metro cities, analysts have said.

Peers Prestige Estates Projects PREG.NS and Brigade Enterprises BRIG.NS have yet to report their earnings.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Price/Sales
Revenue growth (%)
Profit growth (%)
Mean rating*
No. of analysts
Stock to price target**
Div yield (%)
Sobha Ltd
SOBH.NS
35.08
22.70
NULL
20.10
87.26
BUY
14
0.81
0.19
Prestige Estates Projects Ltd
PREG.NS
43.86
18.16
NULL
39.99
82.64
BUY
19
0.91
0.11
Brigade Enterprises Ltd
BRIG.NS
24.36
13.49
NULL
21.12
28.42
BUY
9
0.74
0.26

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JULY-SEPTEMBER STOCK PERFORMANCE

($1 = 88.0560 Indian rupees)

Sobha stocks perf https://tmsnrt.rs/3WG3cDF

 (Reporting by Komal Salecha in Bengaluru; Editing by Janane Venkataraman)

 ((Komal@thomsonreuters.com;))